Binance DEX (decentralized exchange) could kill the dominance of Bitcoin BTC, since all transactions are done on-chain. This will expose the flaw in BTC’s small block size limit, and cause BTC transaction fees to skyrocket.

But we’ve all known the flaw in traditional crypto exchanges: if the exchange collapses or disappears, you lose all your coins, since you don’t have any seed words or private keys.

With a DEX, you hold your seed words & private keys. If the exchange collapses or disappears, you should still be able to access your coins on the respective blockchains.

If DEX exchanges take off, that could be a fatal blow to Bitcoin BTC’s legacy status as a reserve trading currency.

That’s because:

1. Bitcoin BTC’s on-chain transaction costs are [20-200 times more expensive than for other cryptocurrencies](https://bitinfocharts.com/comparison/median_transaction_fee-btc-bch-ltc-dash.html#log&3m) (like BCH, LTC, DASH).

2. Bitcoin BTC has a small block size limit, and can’t scale on-chain, so as DEX trading volume increases, Bitcoin BTC’s [mempool](https://images2.imgbox.com/2c/f1/RG6bXAcK_o.jpg) & transaction costs will skyrocket, making it unusable.

**RESULT**: If decentralized exchanges – like Binance DEX – become popular, Bitcoin BTC on-chain transaction fees will become ridiculously expensive, and people will start looking for a new default cryptocurrency to hold / trade / spend. It will be the end of Bitcoin BTC dominance.

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